Irdai expresses concerns over HDFC Life, Max Financial Services merger
Mumbai: The proposal to create India’s largest private sector insurance company has run into hurdle as the Insurance Regulator and Development Authority of India (IRDAI) has opposed the merger of Max Financial Services Ltd and HDFC Standard Life Insurance Company Ltd. (HDFC Life), as per a disclosure made by Max on BSE on Saturday morning. “An application was filed by MLIC (read Max) and HDFC Life seeking the in-principle approval of IRDAI for the above-mentioned scheme on 21 September 2016. IRDAI has expressed reservations to accept the scheme of amalgamation in its current form,” said Max on BSE. The boards of HDFC Life and Max in August had signed a three way merger, which would create India’s largest private-sector insurer with total assets more than Rs1.1 trillion and lead to the eventual listing of HDFC Life on stock exchanges. Post the merger Housing Development Finance Corp. Ltd (HDFC) and Standard Life (Mauritius Holdings) 2006 Ltd will be the promoters of the merged entity.